WillScot Holdings 2025 Q2 Earnings Strong Turnaround as Net Income Swings 202.3%

WillScot Holdings (WSC) reported its fiscal 2025 Q2 earnings on July 31st, 2025. WillScot Holdings exceeded expectations with a significant turnaround from the previous year's loss, achieving EPS of $0.26. The company narrowed its guidance for the rest of 2025, expecting revenue of $2,300 million to $2,350 million and Adjusted EBITDA of $1,000 million to $1,020 million. This reflects the company's response to end market demand and new tax legislation impacts.

Revenue
Total revenues for WillScot Holdings in the second quarter of 2025 declined by 2.6% to $589.08 million, compared to $604.59 million in the same quarter last year.

Earnings/Net Income
WillScot Holdings achieved profitability with an EPS of $0.26 in Q2 2025, compared to a loss of $0.25 per share in Q2 2024, marking a 204.0% positive change. The net income saw a dramatic improvement as well, with $47.94 million in 2025 Q2, a 202.3% positive swing from a net loss of $46.85 million in the previous year. This reflects a commendable performance in EPS.

Price Action
The stock price of WillScot Holdings edged down 1.91% during the latest trading day, dropped 6.08% in the most recent full trading week, and climbed 7.12% month-to-date.

Post Earnings Price Action Review
The strategy of purchasing WillScot Holdings (WSC) shares after a quarter-over-quarter revenue increase on the financial report release date and holding for 30 days has delivered moderate returns but underperformed the benchmark over the past three years. The strategy's compound annual growth rate (CAGR) was 10.27%, trailing the benchmark by 23.10%. Despite a maximum drawdown of 0.00% and a Sharpe ratio of 0.27, indicating low risk, the strategy offers conservative returns. These metrics suggest that while the strategy limits risk, it may not fully capitalize on market movements compared to broader benchmarks.

CEO Commentary
"Our second quarter 2025 financial results were broadly in line with our expectations with an Adjusted EBITDA Margin of 42.3%, and an Adjusted Free Cash Flow Margin of 22.1%," said Brad Soultz, Chief Executive Officer of WillScot. Soultz noted the deployment of approximately $134 million towards tuck-in acquisitions and returning $53 million to shareholders. He acknowledged strength in larger projects but indicated that the overall end market outlook remains mixed in the near term. The CEO emphasized ongoing initiatives aimed at achieving $3 billion in annualized revenue and $1.5 billion in Adjusted EBITDA over the next three to five years.

Guidance
Based on end market demand expectations for the remainder of 2025, the company narrowed its revenue outlook range to $2,300 million to $2,350 million and its Adjusted EBITDA outlook range to $1,000 million to $1,020 million. Additionally, the company now expects full year 2025 Adjusted Free Cash Flow of $500 million to $550 million, reflecting improvements in working capital and benefits from recently enacted tax legislation.

Additional News
WillScot Holdings declared a quarterly cash dividend of $0.07 per common share, to be paid on September 17, 2025, to shareholders of record as of September 3, 2025. The company also announced a strategic partnership with Penske Entertainment Corp., becoming an official partner of INDYCAR and Indianapolis Motor Speedway from 2025 to 2027. Additionally, WillScot introduced an innovative solar power solution designed for integration with their modular space solutions, offering a sustainable energy option for customers.